As the holiday season continues and the recognition of “Giving Tuesday” is underway, many philanthropists and charities are apprehensive about the reality of making positive differences in the lives of others before year-end. The holidays are traditionally a time where nonprofit organizations raise significant funds for operations and programming while experiencing increased requests for help. The unpredictable economy and cancellation of many fundraising events or in-person meetings will certainly affect how these nonprofits end the year. However, what is clear is that donor-advised funds (DAFs) are filling the potential void.
“DAFs are positioned right now to serve the public good, especially in these uncertain times,” explains Lawson Bader of DonorsTrust. “Charitable contributions from DAFs are already easing significant economic pains for a multitude of charities as 2020 concludes.”
Giving Tuesday, the first Tuesday following Thanksgiving, along with Black Friday and Cyber Monday are a global celebration of generosity. All are encouraged to help others and consider giving of their time and resources. Giving is essential this year as the economic downturn and increased unemployment cause many organizations to scale back services or use “rainy day” reserve funds just to maintain operations.
“Giving from DAFs is increasing as philanthropists look to give more, and more strategically – on Giving Tuesday and beyond - making up for the unanticipated needs and demands many nonprofits are currently experiencing,” Bader continued. “DAFs are like a charitable saving account providing donors with more time to think about which charities to contribute to over time, all while their money is growing in the fund, increasing the impact of giving from both a timing perspective and amount too.”
In 2020 DAFs are proving to a key source of income for charities experiencing fundraising difficulties. The charitable vehicle is growing in popularity, with nearly one million Americans utilizing DAFs to centralize and simplify giving. Low new account minimums make them the great democratizers of philanthropy – available to all, not just the privileged few.
To learn more about how DAFs and DonorsTrust are making a difference, please visit http://www.donorstrust.org
Established in 1999 as a 501(c)(3) public charity, DonorsTrust is a community of donors devoted to creating a better future. Our donors support charities they believe protect our Nation’s constitutional liberties and strengthen civil society through private institutions rather than with government programs. Our boutique size lets us offer our donors personal attention and advice that helps them achieve their philanthropic goals. We ensure that our donors’ intentions are protected and offer them a simple, effective and tax-advantaged way to give. Since inception, DonorsTrust has granted out over $1.3 billion to over 4,000 charities that protect our constitutional liberties and strengthen civil society without government funding.
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